Essays in Honor of Kenneth J. Arrow: Volume 1, Social Choice and Public Decision Making

235 Pages·1986·3.2 MB·English

by  Walter P. Heller

Social choice and public decision making
Essays in honor of Kenneth J. Arrow, Volume I

Social choice and public
decision making
Essays in honor of Kenneth J. Arrow, Volume I
Edited by
WALTER P. HELLER
University of California, San Diego
ROSS M. STARR
University of California, San Diego
DAVID A. STARRETT
Stanford University
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CAMBRIDGE UNIVERSITY PRESS
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CAMBRIDGE UNIVERSITY PRESS
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Published in the United States of America by Cambridge University Press, New York
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Cambridge University Press 1986
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This publication is in copyright. Subject to statutory exception
and to the provisions ofrelevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.
First published 1986
This digitally printed version 2008
catalogue record for this publication is available from the British Library
A
Library of Congress Cataloguing in Publication data
Social choice and public decision making.
(Essays in honor of Kenneth J. Arrow; v. 1)
Includes index.
1. Social choice. 2. Decision-making. 3. Equilibrium
(Economics) 4. Macroeconomics. 5. Uncertainty.
6. Arrow, Kenneth Joseph, 1921-. I. Heller,
Walter P. II. Starr, Ross M. III. Starrett,
David A. IV. Arrow, Kenneth Joseph, 1921-.
V. Series.
HB846.8.S59 1986 339 86-8580
ISBN 978-0-521-30454-2 hardback
ISBN 978-0-521-06379-1 paperback
Contents
Essays in honor of Kenneth J. Arrow, Volumes I, II, III
Volume I Social choice and public decision making
PART I SOCIAL CHOICE
Consequentialist social norms for public decisions
Peter J. Hammond
2 Information and invariance in normative choice
Amartya Sen
3 Utilitarian morality in a world of very half-hearted altruists
John C. Harsanyi
4 On the implementation of social choice rules in irrational societies
Leonid Hurwicz
5 Walrasian social choice: some simple axiomatic approaches
Louis Gevers
PART II DECISION MAKING IN THE PUBLIC SECTOR
6 Testing for optimality in the absence of convexity
Herbert E. Scarf
7 Toward a theory of planning
Michael D. Intriligator and Eytan Sheshinski
8 On the social risk premium
David A. Starrett
9 A problem of financial market equilibrium when the timing of tax
payments is indeterminate
David F. Bradford
IO The shadow price of capital: implications for the opportunity cost
of public programs, the burden of the debt, and tax reform
Robert C. Lind
Volume II Equilibrium analysis
PART I GENERAL EQUILIBRIUM
A general equilibrium theory of North-South trade
Graciela Chichilnisky
v
vi Contents of Volumes I, II, Ill
2 Soldiers of fortune?
Theodore Bergstrom
3 The dynamics of industrywide learning
Nancy L. Stokey
4 Decentralized trade in a credit economy
Ross M. Starr
5 Lump-sum taxes and transfers: public debt in the
overlapping-generations model
Yves Balasko and Karl Shell
6 Coordination failure under complete markets with applications
to effective demand
Walter P. Heller
PART JI MICROFOUNDATIONS OF MACROECONOMICS
7 Price flexibility, inventory behavior, and production responses
Heinz Koenig and Marc Nerlove
8 On asymmetric information, unemployment, and inflexible wages
Mordecai Kurz
9 Asymmetric adjustment costs and sectoral shifts
Laurence Weiss
10 Implicit contracts and risk aversion
Takatoshi Ito
11 An exercise in non-Walrasian analysis
Frank Hahn
12 Monopolistic competition and the multiplier
Robert Solow
Volume III Uncertainty, information, and communication
PART I UNCERTAINTY
Negotiation in games: a theoretical overview
Roger B. Myerson
2 Repeated moral hazard with low discount rates
Roy Radner
3 Existence, regularity, and constrained suboptimality of competitive
allocations when the asset market is incomplete
John D. Geanakoplos and Heraklis M. Polemarchakis
4 Asset pricing theories
Michael Rothschild
Contents of Volumes I, II, III vii
5 Independence versus dominance in personal probability axioms
Thomas Marschak
6 Univariate and multivariate comparisons of risk aversion:
a new approach
Menahem E. Yaari
PART II INFORMATION, COMMUNICATION, AND ORGANIZATION
7 The cost of communication in economic organization: II
Hajime Oniki
8 Assembling efficient organizations?
W. M. Gorman
9 Optimal Bayesian mechanisms
Eric S. Maskin
10 Incentive theory with data compression
Jerry R. Green and Jean-Jacques Lajfont
11 Alternative limited communication systems: centralization versus
interchange of information
Jerry R. Green and Jean-Jacques Lajfont

Contributors
Yves Balasko Takatoshi Ito
Universite de Geneve University of Minnesota
Theodore Bergstrom Heinz Koenig
University of Michigan University of Mannheim
David F. Bradford* Mordecai Kurz
Woodrow Wilson School of Public Stanford University
and International Affairs
Jean-Jacques Laffont
Princeton University
Universite des Sciences Sociales
Graciela Chichilnisky Toulouse
Columbia University
Robert C. Lind*
John D. Geanakoplos Cornell University
Yale University
Thomas Marschak
Louis Gevers* University of California, Berkeley
Faculte Notre Dame de la Paix
Namur, Belgium Eric S. Maskin
Harvard University
W. M. Gorman
Nuffield College Roger B. Myerson
Oxford Northwestern University
Jerry R. Green Marc Nerlove
Harvard University University of Pennsylvania
Frank Hahn Hajime Oniki
Churchill College Osaka University
Cambridge
Heraklis M. Polemarchakis
Peter J. Hammond* Columbia University
Stanford University
Roy Radner
John C. Harsanyi* AT&T Bell Laboratories
University of California, Berkeley
Michael Rothschild
Walter P. Heller University of California, San Diego
University of California, San Diego
Herbert E. Scarf*
Leonid Hurwicz* Yale University
University of Minnesota
Amartya Sen*
Michael D. Intriligator* All Souls College
University of California, Los Angeles Oxford
*Contributors to Volume I.
ix
x Contributors
Karl Shell David A. Starrett*
University of Pennsylvania Stanford University
Eytan Sheshinski* Nancy L. Stokey
Hebrew University Northwestern University
Jerusalem
Laurence Weiss
Robert M. Solow University of California, San Diego
Massachusetts Institute of Technology
Menahem E. Yaari
Ross M. Starr Hebrew University
University of California, San Diego Jerusalem